Specific Program Guidelines (FHA, VA, USDA)

Question 1

The two primary loan programs for FHA are what?

Answer 1

1. 203B - fixed rate mortgage program and

2. 251 - the ARM program

Question 2

Minimum FICO score for a 3.5% down FHA loan is what?

Answer 2

580…although most lenders limit the lowest score to 620.

Question 3

What are FHA “seller concessions” limitations?

Answer 3

Loans are permitted to contain up to 6% seller concessions.

Question 4

What is an HECM?

Answer 4

It’s FHA’s version of a reverse mortgage. Stands for Home Equity Conversion Mortgage.

Question 5

What must borrowers complete first before going through with an HECM?

Answer 5

They must complete borrower counseling and pay up-front and annual MIP’s.

Question 6

What are seller concession limitations for VA loans?

Answer 6

Seller concessions are permitted up to 4%

Question 7

Is there any loan limit for a VA loan?

Answer 7

NO, although there may be limitations from fannie mae and freddie mac.

Question 8

What percentage does the VA funding fee range from?

Answer 8

.50-3.30% of the loan amount and is smaller the more of a down payment borrowers put down.

Question 9

What are debt ratios for USDA?

Answer 9

Housing Ratio of 29% and Debt ratio of 41%

Question 10

What are the funding fee requirements for USDA loans?

Answer 10

2% non-refundable funding fee and a .40% annual fee paid monthly.

Question 11

Are borrowers permitted to finance their funding fee if they choose to do so?

Answer 11

Yes. This allows financing up to 102%